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California Tribes Accused of Downplaying Success

SACRAMENTO, California – As reported by the San Diego Union-Tribune: " It's no secret that Indian casinos in California are doing well. The real secret is just how well.

"The tribes do not have to publicly report earnings, and they closely guard that information.

"…The consensus has been that the casinos are generating $5 billion a year in gross gaming revenue – bets minus payouts, the standard industry measure of performance.

"Tribes, aware that the number has become part of a political calculation that could cost them dearly, downplay their success. The only reliable figure, they contend, is the $3.6 billion they collectively reported to the federal government last year.

"The actual figure appears to be closer to $6 billion, if it hasn't already eclipsed that, according to a Copley News Service analysis of the limited public data available.

"That number is significant because it illustrates the breathtaking growth of Indian gambling in the four years since voters legalized Nevada-style casinos on California reservations

"…More immediately, however, the figure could play a prominent role in the coming debate over Gov. Arnold Schwarzenegger's demand that tribes pay their 'fair share' to the state. Former Gov. Gray Davis asked tribes to pay the state $1.5 billion earlier this year.

"…In September, the commission posted a bulletin disclosing that some tribes were underreporting gross revenue. The commission's chairman, Philip Hogen, repeated the message in a recent appearance before California tribal officials.

"…Attorney Howard Dickstein represents three of the state's most successful gaming tribes – Pala of north San Diego County, United Auburn and the Rumsey band of Yolo County.

"He doesn't believe the tribes' gross gaming revenue is anywhere near $6 billion a year and suggested that, at any rate, the overall figure has little bearing on negotiations with the Schwarzenegger administration…"

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